RELIANCE FINANCIAL SERVICES NSW PTY LIMITED v SOBBI & ANOR [2010] NSWSC 236

New South Wales Supreme Court

CITATION : RELIANCE FINANCIAL SERVICES NSW PTY LIMITED v SOBBI & ANOR [2010] NSWSC 236

HEARING DATE(S) : 28, 29, 30 September 2009, 1, 2 October 2009, 18, 19 November 2009, 11 December 2009, 11 February 2010

JUDGMENT DATE : 1 April 2010

JURISDICTION : Common Law

JUDGMENT OF : Hall J at 1

(1) An order that the defendants give the plaintiff possession of the land comprised in the relevant Certificate of Title Folio Identifier. DECISION : (2) An order that the plaintiff have leave to issue a Writ of Possession in respect of the property referred to in order (1). (3) Judgment be given in favour of the plaintiff against the defendants in the amount of the judgment debt together with interest calculated on that sum to the date of judgment. (4) That the defendants' Second Further Amended Cross-Claim be dismissed.

CATCHWORDS : CONTRACTS – Contracts Review Act 1980 – unjust contracts – loan contract – guarantee and mortgage security provided by defendants (parents of borrower) – purpose of the loan – adult son in financial difficulty – whether defendants/parents aware of that fact – alleged threats made to son to pay monies – whether there was a single or dual purpose of loan from plaintiff lender – whether loan to son for benefit of family business operated by company of which defendants sole directors and shareholders – whether defendants in position of "special disadvantage" – whether in particular the claimed indebtedness of adult son and alleged threats made to him constitute a position of "special disadvantage" – issues of credit over true purpose of loan central to issues of whether the contracts were "unjust" or unconscionable under general law principles - cross-claim by guarantor/mortgagors to avoid guarantee and mortgage under Contracts Review Act and for unconscionability dismissed - judgment that defendants pay plaintiff (lender) outstanding loan and for possession